Citi Card Cash Advance Rates Vary by Card and Change Over Time
The cash advance rate on a Citi card is not a single number. It depends on which Citi card you hold, and Citi changes these rates periodically based on market conditions and your creditworthiness. Most Citi cards charge a cash advance rate that is higher than the purchase rate — sometimes 3 to 5 percentage points higher. Some Citi cards do not offer cash advances at all.
The rate you see in the card's terms and conditions is the starting rate, not a may provide. Citi can increase your rate after you open the account if your credit score drops or if you miss a payment. The only way to know your exact current rate is to check your Citi account online, call the number on the back of your card, or look at your most recent statement.
Cash advances also carry fees that the interest rate does not cover. Most Citi cards charge a cash advance fee of 3% to 5% of the amount you withdraw, with a minimum fee of $5 to $10. This fee is separate from the interest you will owe.
Key Takeaways
- Citi cash advance rates are higher than purchase rates and vary by card type, ranging roughly from the mid-teens to the mid-20s percent.
- Interest on a cash advance begins accruing when ready — there is no grace period like there is for purchases.
- You will pay both a cash advance fee (usually 3% to 5% of the amount withdrawn) and interest, making cash advances expensive.
- Your actual rate depends on your credit score and payment history, so you must check your account or statement to see what you are charged.
- Citi offers cash advances on most standard credit cards but not on all card products, so confirm your card supports them before you try to withdraw.
How Cash Advance Interest Works on Citi Cards
When you take a cash advance on a Citi card, interest starts accruing the same day you withdraw the money. Unlike a purchase, which may have a grace period of 20 to 25 days before interest kicks in, a cash advance has no grace period. Every day the money is outstanding, you owe interest at your card's cash advance rate.
The interest compounds daily. If you withdraw $500 at a 24% annual rate, you owe roughly $3.29 in interest after the first month if you make no payment. That amount grows each month you carry the balance. The longer you hold the cash advance, the more you pay in total interest.
Citi calculates interest using the average daily balance method. This means the company tracks how much you owe each day of the billing cycle, adds those daily balances together, divides by the number of days in the cycle, and applies your rate to that average. If you pay down the cash advance partway through the month, your average daily balance drops and you owe less interest for that cycle.
Cash Advance Fees and Other Costs
The cash advance fee is charged at the time you withdraw the money, not later. If you take out $500 and your card charges a 4% fee, you pay $20 when ready. That $20 is added to your balance, so you now owe $520 plus interest on the full $520.
Some Citi cards have a flat minimum fee instead of a percentage. For example, a card might charge the greater of $5 or 3% of the amount withdrawn. If you take out $100, you pay $5 (the minimum). If you take out $500, you pay $15 (3% of $500).
ATM operators may also charge you a fee to withdraw the cash. This is separate from Citi's fee. If you use an out-of-network ATM, the operator's fee can range from $2 to $5 per transaction. Citi may also charge you an additional out-of-network fee on top of the operator's fee, depending on your card.
Where to Find Your Card's Cash Advance Rate
Log into your Citi account online or through the Citi mobile app. Go to the account details or card information section. Look for "APR" or "Annual Percentage Rate" — you should see separate rates listed for purchases, balance transfers, and cash advances. The cash advance APR is the rate you will pay.
If you do not have online access yet, call the customer service number on the back of your Citi card. A representative can tell you your current cash advance rate, your cash advance fee, and any limits on how much you can withdraw. Have your card number ready.
You can also review your most recent billing statement. The statement shows the APR for each type of transaction. If you have taken a cash advance recently, the statement will show the fee charged and the interest accrued.
Cash Advance Limits and How They Work
Citi sets a cash advance limit on your account, which is usually lower than your total credit limit. For example, you might have a $5,000 credit limit but only a $1,500 cash advance limit. This limit is set based on your credit score and payment history when you open the account.
You can request a higher cash advance limit by contacting Citi customer service. Citi will review your account and may approve an increase, but there is no may provide. A higher limit does not mean you should use it — cash advances are expensive, and borrowing more means paying more in fees and interest.
The cash advance limit resets each month as you pay down the balance. If your limit is $1,500 and you withdraw $1,500, you cannot withdraw more until you pay some of it back. Once you pay $500, your available cash advance limit becomes $500 again.
Why Cash Advances Cost More Than Regular Purchases
Credit card companies charge higher rates for cash advances because they view them as riskier. When you make a purchase, the merchant guarantees the transaction and the card company can dispute it if something goes wrong. With a cash advance, you have the cash in hand and the card company has no recourse if you cannot pay it back.
The lack of a grace period also makes cash advances more expensive. You start paying interest when ready, whereas a purchase might give you 20 days interest-free. Over time, this difference adds up significantly.
The fee itself — 3% to 5% — is a direct cost that purchases do not carry. On a $500 cash advance, you are paying $15 to $25 just to get the money, before any interest accrues. This makes cash advances suitable only for genuine emergencies, not for everyday spending.
Alternatives to Citi Card Cash Advances
If you need cash urgently, a personal loan from a bank or credit union may be cheaper than a cash advance. Personal loans typically charge lower interest rates than cash advance rates, and you pay interest only on the amount you borrow, not an upfront fee. The downside is that approval can take a few days, whereas a cash advance is when ready.
A balance transfer to a different card with a 0% introductory rate is another option if you are trying to move existing debt. Some Citi cards offer 0% balance transfer rates for 6 to 12 months, though you will still pay a balance transfer fee of 3% to 5%. This works only if you are moving debt from another card, not if you need new cash.
If you have a line of credit with your bank, that is often cheaper than a cash advance. Lines of credit usually charge lower rates and do not have the upfront fees that cash advances do. Ask your bank whether you have access to a line of credit before you use a cash advance.
Frequently Asked Questions
Can I get a cash advance with a Citi card at any ATM?
You can withdraw cash at most ATMs that display the Visa or Mastercard logo, depending on your card. However, out-of-network ATMs charge operator fees that Citi ATMs do not. Use a Citi ATM or an ATM in your bank's network to avoid extra charges. Check the Citi website or app to find ATMs near you.
What happens if I cannot pay back a cash advance?
The cash advance balance stays on your card and accrues interest each month until you pay it. If you miss payments, Citi will report the missed payment to credit bureaus, which will lower your credit score. Citi may also increase your interest rate or close your account. Contact Citi when ready if you are struggling to pay — they may offer a hardship program.
Is the cash advance rate the same as my purchase rate?
No. The cash advance rate is almost always higher than the purchase rate on the same card. If your purchase rate is 18%, your cash advance rate might be 22% or 24%. Check your card's terms to see both rates listed separately.
Do I have to pay the cash advance fee if I pay back the money quickly?
Yes. The cash advance fee is charged when you withdraw the money, not based on how long you hold it. Even if you pay back the full amount the next day, you still owe the fee. This is why cash advances are expensive for any amount of time.
Can Citi lower my cash advance rate?
Citi can lower your rate if you ask and your credit score has improved significantly since you opened the account. Call customer service and request a rate reduction. There is no may provide Citi will approve it, but asking costs nothing. Citi is more likely to lower your rate if you have a long history of on-time payments.